LITTLE ROCK (AP) - A bill-writing mistake that struck extra money for isolated school districts from a proposed school funding formula left the centerpiece of a special session on education tied up in the Senate on Monday.

The House, meanwhile, defeated for a second time legislation allocating $10 million for a study needed to begin upgrading school buildings and equipment, a key requirement in a state Supreme Court order to overhaul Arkansas' failing public education system.

Earlier Monday, the Joint Budget Committee endorsed a $40 million plan to expand preschool programs for poor children, which would push the price tag for reforms envisioned in the proposed funding formula to about $413 million - beyond what could be covered by a 1-cent sales tax increase.

"It's not a hurdle we can't get over. We've just got to have a desire to do it," said Sen. Dave Bisbee, R-Rogers, lead sponsor of the funding formula bill.

But the Legislature's tax committees began the eighth week of the longest Arkansas special session on record the same way they ended the seventh - putting off votes on raising taxes to pay for court-ordered reforms.

The Legislature has been meeting since Dec. 8 find remedies for a failing public school funding system that the state Supreme Court declared unconstitutionally inequitable and inadequate in November 2002.

Bisbee said lawmakers were dragging their feet on tax votes because of distrust caused by term limits.

"There's distrust between members, distrust between the Senate and the House, distrust between the Legislature and the governor," Bisbee said. "So everybody wants this done before they'll do this. Somebody else wants this done before they'll do that.

"We're trying to get everything in the right posture, if we can get anybody to do anything. It's just a nightmare."

Some members of the Senate tax panel said they would not support the funding formula, or any tax increase, before they were sure the state would continue to give extra money to districts isolated by miles, terrain or other factors.

A bill to consolidate the administrations of districts with fewer than 350 students is on Gov. Mike Huckabee's desk.

Sponsors of the funding formula in SB42 said they would write money for isolated schools into a separate bill and move it today for Senate concurrence in House amendments - the final step for legislative approval of the formula, which could move legislators to consider tax proposals.

They considered making the change by gutting an ill-fated bill to shield nearly three dozen small school districts from consolidation by designating them as isolated. HB1018 passed the House but has languished in the Senate Education Committee.

But the solution also could put small schools more directly at the mercy of Gov. Mike Huckabee, who has pushed for consolidating the state's smallest districts to make education reforms more affordable.

"Any (isolated school funding) bill that you put out there by itself, he's probably going to veto it," Sen. president pro tem Jim Hill, D-Nashville, speculated.

Huckabee's office had no immediate comment.

House members opposed to paying $10 million for a school facilities study argue that it could be done for less by Arkansas companies, although no Arkansas companies submitted proposals to do the work.

Rep. Bill Stovall, D-Quitman, said county assessors and local companies could partner to assess the condition of school buildings in each county.

But members of a school facilities committee, which recommended the $10 million contract for an Ohio company to do the work, have said the company has the expertise to conduct a proper assessment and that having one company do the work would ensure consistency.

SB7 failed on a 51-29 vote, with 75 votes needed for passage in the 100-member House. Nineteen members did not vote, and Rep. Benny Pettrus, D-Stuttgart, voted "present."

Legislators have been divided for months about whether to fund the preschool expansion despite evidence that such programs make a big difference in student achievement.

"When we are gone from this place, we will be able to look back on this and see that we really did make a difference," said Sen. Shane Broadway, D-Bryant and the sponsor of SB55.

But Sen. Kim Hendren, R-Gravette, questioned the rising cost of the overall education reform package and whether legislators would be able to raise enough money to cover its costs.

"We ought to decide how we are going to pay for this before we approve it," he said.